Bargaining

• Collective labor agreements are negotiated under a collective bargaining agreement, according to Cornell University Law School. During this period a labor union or organization negotiates the working rights and issues of its members with an employer.
  
  

Law

• The National Labor Relations Act of 1935 permits collective agreements. Alongside federal law, state regulations provide a framework for what is allowed and not allowed to be placed in a collective agreement.
  
  

Benefits

• Both employers and employees receive protection and certain benefits under collective labor agreements. A collective agreement provides an employer with a specified time period during which the employer is not liable to be affected by strikes and other detrimental labor activities. Employees receive guarantees regarding wages, hours and fringe benefits for a specified period of time.